2411 FOUNTAIN VIEW ±2.43 ACRES INFILL | EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp., a licensed real estate broker (“HFF”).

CBD GREENWAY WILLIAMS PLAZA RIVER OAKS TOWER

AFTON OAKS GALLERIA

MARATHON OIL

CAPITAL ONE PLAZA

BERING DRIVE

2411 FOUNTAIN VIEW AUGUSTA STREET

WESTHEIMER ROAD

2626 FOUNTAIN VIEW DRIVE MARQUIS AT FOUNTAIN TANGLEWOOD VIEW

BURGOYNE ROAD POTOMAC DRIVE INVESTMENT SUMMARY

HFF is pleased to offer qualif ied investors an extraordinary opportunity to acquire ±2.43 acres Address: 2411 Fountain View, Houston, Texas located at 2411 Fountain View (“the Property”) in Houston, Texas. The Property is an exceptional site due to its location just west of and south of Tanglewood. Future development will Size: ±2.43 Acres benef it from its immediate access to the highly amenitized Galleria/Uptown submarket along with Current Use: Office Building (Vacant) quick commutes to Houston’s other major employment centers. This offering represents a tremendous Multifamily, condominium, hotel, office, medical, or Proposed Use: opportunity to acquire a highly visible site that is ideal for multifamily, condominium, off ice, or senior living development senior living development.

The Woodlands Grand Pkwy Lake The Opportunity Houston State Park

ExxonMobil 69 The site is approximately ±2.43 acres and is located in a core infill location off of Westheimer and Fountain View.Corporate It is part Headquarters of the Galleria/Uptown District submarket (83,000+ jobs) and only 1.4 miles west from the heart of the district. Galleria/Uptown is the city’s preeminent, upscale shopping district, its biggest hotel district, one of the largest districts in the nation, and a world-renowned touristEastex Frwydestination.

Galleria/Uptown by the Numbers

Proposed

Greenspoint Grand Pkwy Sam Houston Pkwy Lake Houston 83,000 Employees 100+ Restaurants 6M SF Retail Space 69 200,000 Daily Population 2,000+ Companies 32.2M SF Office Space 30M Annual Visitors 7,800 Hotel Rooms

Northwest Frwy North Frwy Sheldon Reservoir ±352 FEET

Westbelt Beaumont Hwy North Loop Baytown East Frwy

Energy

FOUNTAIN VIEW DRIVE Corridor

±414 FEET FEET ±414 ±414 ±414 FEET ±414 The Galleria ±449 FEET ±2.43 ACRES 2411 FOUNTAIN VIEW CBD George Bush Westchase Uptown District Park Westheimer Rd Greenway San East Loop Port of Houston Jacinto Bay Westpark Tollway Texas Pasadena Frwy Medical Port of Houston

West Loop West Center South Loop Southwest Frwy Barbour’s Cut Terminal

69 Galveston

Pkwy Bay Sam Houston Tollway Bayport Terminal Sugar Land Bend Gulf Frwy ±182 FEET Armand Bayou Park

Fort NASA Clear South Frwy Clear Lake Lake 2411 FOUNTAINLeague City VIEW | 2

Smithers Lake

Proposed Grand Pkwy | 2411 FOUNTAIN VIEW INFILL HOUSTON

Aerial View Facing Northeast

ENERGY CORRIDOR MEMORIAL CITY

SECOND BAPTIST

SAN FELIPE STREET

BRIARGROVE

TATE AT TANGLEWOOD

FOUNTAIN VIEW DRIVE WESTHEIMER ROAD 2411 FOUNTAIN VIEW

2411 FOUNTAIN VIEW | 3 EXECUTIVE SUMMARY

Superior Demographics   The site is flanked by Houston’s most affluent neighborhoods and has outstanding demographics to support ,  numerous development configurations, with key measures that far exceed Houston MSA averages.   ,

Q  DEMOGRAPHICS 1-MILE 3-MILE 5-MILE Q ,  2018 Population Estimate 34,342 212,490 513,826 202 Projection 36,823 228,023 547,755 Q 

Growth 2018-2023 7.22% 7.31% 6.60% Q , 2018 Average Household Income $111,856 $111,934 $119,790   , % HH income $250,000+ 4.08% 5.49% 6.16% Median Owner Occ. Housing Value $403,098 $552,715 $472,585   , , , ,  , , Houston Multifamily Market Poised for Growth

Recognized Nationally as Top Performing Market Houston’s Economy: A Stalwart of Growth and Diversity Houston was recently ranked the #3 undersupplied metro in the nation by National Multi Housing Council Houston ranks as the 4th most populous city in the with 2.3 million citizens and the 5th most with an estimated 15,300 units needed annually from now until 2030 to meet population growth and populous MSA with 6.9 million residents. Houston was number 2 behind DFW in population growth over changing housing dynamics. By 2030, Houston will have an estimated 3.8 million renters based upon the the last year and has consistently added between 100,000 and 150,000 residents over the last 3 years. MSA’s prolific population growth. Additionally, 8,571 units are expected to deliver in the Houston metro On top of population growth Houston is home to greater than 3 million jobs and job growth continues to area in 2018, which is down from 21,707 units is 2016 and 13,843 units in 2017. increase with April T-12 numbers adding another 84,500 jobs.

2411 FOUNTAIN VIEW | 4 EXECUTIVE SUMMARY

Lake Houston Houston’s Best Urban Infill Liability State Park

Few locations outside of the loop offer the accessibility to prime employment that 2411 Fountain View offers. Located within minutes of Interstate 10, Highway 59 and the 610 loop, the site offers multiple commute options to all of Houston’s best employment, epicurean, retail, entertainment, professional sports and recreation experiences.

ENERGY CORRIDOR

I GREENWAY PLAZA A DOWNTOWN ENERGY CORRIDOR 10-Minute Commute  22,100+ Employees 20-Minute Commute 20-Minute Commute  105,195+ Employees 105,000+ Employees DOWNTOWN WESTCHASE DISTRICT

2411 FOUNTAIN VIEW TEXAS UST MEDICAL CENTER 20-Minute Commute WESTCHASE  110,000+ Employees DISTRICT GALLERIA/UPTOWN DISTRICT TEXAS MEDICAL CENTER 15-Minute Commute GALLERIA/ UPTOWN DISTRICT 93,000+ Employees A 3-Minute Commute  83,000+ Employees

Clear Lake

Smithers Lake

2411 FOUNTAIN VIEW | 5 EXECUTIVE SUMMARY

2411 FOUNTAIN VIEW | 6 LOCATION OVERVIEW

EXCEPTIONAL LOCATION NEAR GALLERIA/UPTOWN DISTRICT

2411 Fountain view has an exceptional location on the western edge of the Galleria/Uptown District, widely recognized as the city’s most livable area with a diverse mix of urban employment, entertainment, shopping and dining opportunities. The convenience and attractions of this location are unrivaled in the metropolitan area, and it is Houston’s original and most successful “Live, Work, Play” environment. The expansive mixed-use opportunities in the Galleria/Uptown District all represent a significant draw to the people in the area making it one of Houston’s most desirable markets. The submarket consistently draws the highest multifamily rents of any submarket outside of the 610 loop.

The property is proximate to many major transportation corridors including the 610 loop and Sam Houston Tollway (Beltway 8), Houston’s inner and outer loops respectively, as well as Highway 59 and Interstate 10. The site has enviable access points of interest in the immediate area and the entire city including Houston’s main employment centers: Downtown, The Medical Center, Greenway, Memorial City, Westchase and the Energy Corridor. The accessibility offered by 2411 Fountain View is very unique, making this location highly attractive to investors.

OFFICE RETAIL HOTELS/TOURISM RESIDENTIAL

• 15th largest business district in the • 6+ million SF of gross leasable retail • Most sought-after tourist destination • More than 212,490 residents within a nation, comparable in size to the space - more than any other retail in the city - The Galleria Mall is the three-mile radius earning an average downtowns of Pittsburgh and Denver destination in Houston number one shopping and tourist household income of $111,934 attraction in the southwest • 32.2 million SF of commercial office • The Galleria Mall is the 4th largest • Nearby neighborhoods include space, 19.5 million SF of which is retail complex in the United States with • Host to more than 30 million visitors Tanglewood, Afton Oaks and River Oaks, Class-A more than 400 stores and restaurants annually where home values average more than covering 2.4 million SF $1 million • Signature buildings designed by the • The largest hotel district in Houston world’s leading architects including Post • Mall anchors Macy’s, Neiman Marcus, with 34 hotels and 7,800+ rooms • Per capita income is higher than Beverly Oak Central, , Four Leaf Nordstrom, and Saks 5th Avenue Hills, Buckhead and Highland Park • $313 million in hotel room revenue Towers, the Galleria and the 64-story average annual sales of $900/SF Village annually, generating the highest RevPAR • Annual retail sales in the submarket (Revenue per Available Room) in the city • Home to approximately 2,000 exceed $3.6 billion, making it the companies with 83,000 employees, highest volume of any retail shopping representing a variety of diverse district in the metropolitan area industries such as energy, financial, • Home to the largest number of couture information technology, real estate and retailers in the city including Bulgari, professional services Giorgio Armani, Hermes, Versace, and Yves Saint Laurent

2411 FOUNTAIN VIEW | 7 | 2411 FOUNTAIN VIEW INFILL HOUSTON

Aerial View Facing Northwest

MEMORIAL PARK

MARATHON GALLERIA OIL GABLES TANGLEWOOD

TUSCANY SAN FELIPE STREET COURT TATE AT TANGLEWOOD TANGLEWOOD COURT CAPITAL ONE FOUNTAIN VIEW DRIVE PLAZA 2411 FOUNTAIN VIEW

2626 FOUNTAIN VIEW

POTOMAC DRIVE

WESTHEIMER ROAD

2411 FOUNTAIN VIEW | 8 MULTI-HOUSING MARKET OVERVIEW

MARKET OVERVIEW O Average Occupancy 10Yr Avg 92.0% Building upon the momentum of late 2017, Houston reasserted its position as one of the national leaders in economic 90.0% growth and multi-housing performance. In March, the U.S. Census Bureau reported that the Houston metropolitan area 88.0% population grew 1.4% last year (+94,417 people), ranking 2nd in the nation, while the latest figures from the U.S. Bureau o Change of Labor Statistics showed 2% job growth (+62,500) over the last 12 months, ranking 4th amongst its peers. 86.0% 84.0% YoY Change These demand drivers propelled the multi-housing market forward, which recorded 15,406 units of net absorption year- 82.0% over-year in March according to Apartment Data Services. The Houston metropolitan area exhibited 5.2% rent growth 80.0% over the same period, and occupancy increased to 89.7% as well, up 1.5% from the first quarter of 2017. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18

In addition to a strengthening local economy, the other key factor in the city’s upswing in performance is its decreasing supply pipeline. Axiometrics reported that the Houston metropolitan area will have the steepest decline in new deliveries Average Rent PSF 10Yr Avg year-over-year in 2018. There are approximately 8,571 units scheduled to deliver in 2018 in the Apartment Data Services R R $1.20 database, a 62% drop from deliveries in 2017. It will be the first year since 2012 that the city would have less than 10,000 $1.10 units added to the new supply. To date, there are only 2,529 units scheduled for 2019. $1.00 o Change $0.90 The lack of new construction capitalized and scheduled thus far is helping to mitigate concerns about the impact of $0.80 Harvey move-outs on the market, as the remainder of people in temporary housing migrate back to homes this year. YoY Change $0.70 Investors have noted Houston’s rebounding performance, and transaction volume increased 185% year-over-year at the $0.60 end of the first quarter of 2018, according to Real Capital Analytics, with $1.7 billion closed within the first three months $0.50 of the year. Only three other cities (Manhattan, Dallas and Los Angeles) posted more trade volume than Houston in the 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 first quarter.

MARKET SNAPSHOT A Net Absorption (units) 10Yr Avg # of Operating Communities 2,738 T12 Rental Rate Growth 5.2% 20,000 18,000 # of Operating Units 642,037 Occupancy* 89.7% 16,000 14,000 Avg YOC/Community 1988 Stabilized Occupancy 90.7% o Change 12,000 10,000 Avg Units/Community 234 T12 Occupancy Growth 1.5% 8,000 Avg Size (sf) 882 T12 Deliveries (units) 13,604 6,000 YoY Change 4,000 Average Rent Per Unit ($/month) $1,022 T12 Net Absorption (units) 15,406 2,000 0 Average Rent Per SF ($/month) $1.16 Under Construction (units) 10,114 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD Source: Apartment Data Services *Occupancy calculations include communities that are in lease-up and communities with down units taken offline.

N S New Supply (units) 10Yr Avg SUBMARKET OVERVIEW 25,000 20,000

The site is well positioned in the Galleria/Uptown Submarket, one of the city’s best performing submarkets and leaders o Change 15,000 of absorption for numerous years running. The submarket has seen strong year over year rental rate increases with a 10,000 5.8% increase over the last 12 months compared to the greater Houston market increasing only 5.3%. Rental rates for YoY Change Class A products in the submarket are $1.75 PSF further proving this submarket’s Class A product to be well above other 5,000 Class A rental rates across Houston. Occupancy has also seen increases of 5.5% in the last 12 months. On top of strong 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 rent growth and occupancy growth, there is very little multifamily construction in the vicinity of this site and a lack of real YTD opportunities to build multifamily in the future.

9 | ±10 ACRES ENERGY CORRIDOR 2411 FOUNTAIN VIEW | 9 HOUSTON OVERVIEW

With a population of 2.3 million, Houston is the fourth-largest city in the United States. Preferred Corporate Home The Houston MSA, covering nearly 10,000 square miles and comprised of 6.77 million There are 24 Fortune 500 and 46 Fortune 1000 companies headquartered in Houston, ranking it third in the people, ranks third in job creation among MSAs between 2000 and 2016. In 2015, the nation. Many of these companies are tied to oil and gas but the list also includes several other industries, MSA passed the three million job mark for the first time in history and registered a GDP including banking, real estate, human resources, construction, food distribution, waste management, of $503.3 billion. As a global gateway city known for being the energy capital of the utilities, telecom, retail, tech and more. More than 1,500 significant corporate relocations or expansions world, Houston also boasts the nation’s largest medical center, a leading U.S. port and an have occurred since 2009 (Relocation/ expansions creating more than 50 jobs, leasing 20,000 square feet internationally renowned hub for arts. and/or investing more than $1.0 million).

Energy Capital of The World 2006-2016 POPULATION & EMPLOYMENT % GROWTH MAJOR U.S. METROS Houston is home to over 4,800 energy-related companies with nearly every major energy company maintaining 35% a presence in the city. Despite the negative headlines surrounding the industry since the collapse of the price of

Austin 30% oil in 2014, the petrochemical and refining complexes located along the Houston Ship Channel are growing at a rapid pace. There are over $50 billion of new refining projects either recently completed or under construction 25% in the Greater Houston area. The petrochemical and refining complex along the 25-mile Houston Ship Channel at the Port of Houston is the largest in the Western Hemisphere and the second-largest in the world. Dallas-Fort Worth 20% Denver Houston

EMPLOYMENT 15% San Francisco Seattle

Boston Washington DC 10% Atlanta San Diego New York City Miami 5% Phoenix Los Angeles National Average

0% 0% 5% 10% 15% 20% 25% 30% 35%

POPULATION

Sources: Oxford Economics, Real Capital Analytics, HFF Research, *dots represent all U.S. metros as classified by Oxford Economics, those highlighted in orange represent the 20 most liquid CRE markets across property types according to RCA and include where HFF has an o‚ce/significant presence

2411 FOUNTAIN VIEW | 10 HOUSTON OVERVIEW

Texas Medical Center The Port of Houston The Texas Medical Center (“TMC”) in Houston is the largest life sciences destination in the world, with The Port of Houston is the busiest container port on the Gulf Coast with over 80% of activity tied to oil and over 56 member institutions (including 21 hospitals). The TMC is equivalent to the size of the seventh- gas. Plastics, petrochemicals and heavy machinery manufactured in Texas are the lead export activity while largest Central Business District (CBD) in the U.S., and has tripled in size over the past 20 years. With over consumer products and raw materials are the lead import activity. The recently expanded Panama Canal now 106,000 employees (more than ExxonMobil, Google, or Apple), 50,000 life science students, and thousands allows the transit of ships with 12,600 containers per vessel and large liquefied natural gas (LNG) tankers, of volunteers and patient visits, over 160,000 people visit the TMC each day. Spanning 45.8 million square opening up significant opportunities for the Port of Houston. feet, the Texas Medical Center currently has over $3 billion of projects under construction and is expected to • The Port of Houston has ranked first in the U.S. in import tonnage for the past 25 years, is the largest eclipse 59 million square feet by 2020. Gulf Coast container port, and has ranked 2nd in total tonnage for 23 straight years. • The Houston-Galveston Customs District handled $162.8 billion in trade in 2016, including $69.8 billion in imports and $93.0 billion in exports. That makes Houston the largest export market in the U.S. • There are ten major rail companies that connect the Port of Houston to the largest markets in the continental U.S., Canada, and Mexico.

Global Hub for Arts and Culture Forbes Travel Guide ranked Houston among its top 12 destinations in the world for 2017. The city is widely recognized as an important city for the contemporary visual arts and the Theater District in has the second-most number of theater seats of any U.S. city after New York City (14,000+). The 17-block district features nine world renowned performing arts organizations, and many smaller ones, in four venues – Jones Hall, Wortham Theater Center, Alley Theatre, and Hobby Center for the Performing Arts. The The Houston Airport Center Houston Museum District boasts over 20 museums, galleries and cultural centers such as the Museum of Fine Houston is one of only six U.S. cities with two international airports. In 2016, 54.5 million passengers (11.6 of Arts, Houston (MFAH), the Menil Collection, and the Houston Museum of Natural Science. which were international travelers) passed through the Houston’s airport system. George Bush Intercontinental Global Presence and William P. Hobby offer direct flights to a combined 200 destinations across five continents. Ellington Airport (EFD) was recent granted a launch site license from the Federal Aviation Administration Houston ranks third in the U.S. in terms of its total number of consular offices with 90+ countries that (FAA) to establish a launch site for Reusable Launch Vehicles, making it the 10th commercial spaceport in maintain official government representation. There are also 15 foreign governments which also maintain the U.S. The site benefits from its long history of collaboration with the National Aeronautics and Space trade and commercial offices, and the Houston metro area has 35 active foreign chambers of commerce. The Administration (NASA)’s Lyndon B. Johnson Space Center, where human spaceflight training, research, and Greater Houston Partnership lists 5,000+ Houston companies doing business abroad and 1,000 Houston firms flight control are conducted. reporting foreign ownership.

2411 FOUNTAIN VIEW | 11 DAVIS ADAMS Managing Director (713) 852-3558 [email protected]

STERLING CURRY Real Estate Analyst (713) 852-3466 [email protected]

JOHN WILLIAMSON Real Estate Analyst (713) 212-6587 [email protected]

9 Greenway Plaza Suite 700 Houston, TX 77046 www.hfflp.com

Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.